The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-02-04
ME. SECRETARY MANNING
MAKES ANSWER TO THE HOUSE
RESOLUTIONS
In Plain Terms, and In Addition
Answers the Question, What
Debt Shall We Payl


on the following points:
First-Whether any portion OF tb
mony appropriated by the sundr
civil act approved August "a, 1885,
has been expended In issuing Treas
ury notes OF large denomination in lie
OF small denominations Cancelled or re
tired.
Second-How many 81 and 81 note
have been cancelled and destroye,
since the passage OF the act2
Third-How many OF said note
Cancelled and destroyed were mutilate,
notes, and whether notes OF like de
nomination were issued in thei
stead?
In response 10 the first OF thes
QUESTION:, the Secretary cites the act
under which Treasury notes were is
sued and outstanding on August 4
1885, and states that Congress In eacl
OF these enactments imposed upon tn,
Secretary Of the Treasury the duty o
fixing, according TO his discretion
sometimes the sums, often the reissue
always the denominations, as well a
regulations for custody, redemption
payment aud destruction OF the same
Nevertheless, he Ia not aware that hi
has had the authority under any o
these enactments or otherwise since
August A, 1886, either TO issue Treasury
notes OF any denomination, large Of
small, or to reissue any, whether In
denominations changed or unchanged
Ga this point the Secretary says
In the administration OF solvent gov.
ernments by capable officers, Treasury
notes have been reissued only when
expenditures have been in excess oil
income. But beg respectfully to re.
call the attention OF the House OF Rep.
resentatives to the facts which had
the honor TO lay before them In my
last annual report, showing that such
Is not the case OF this government, but
on the contrary. that for the last seven
years, besides expanding 1924, 900, 900
per annum In the purchase OF metal
at present lacking international cur.
rency aud supernuous for local cur
rency, the annual excess OF ordinary
revenue over ordinary expenditure
has been about 800, 100000, which
excess Is gradually enlsfging, 60 thai
the measure OF our present annual
surplus taxation being thus nigh to
$l25, DOC, 900 Is the measure also OF the
clear distance which sep irates this de.
partment and this government from a
present need OF excuse to reissue
Treasury notes.
That another species of our out
standing indebtedness, namely, the
legal tenders or greenbacks, known In
the law as United States notes, are
equally, with which the law designates
as Treasury notes, beyond any need or
excuse for reissue; that Temporary
notes which are debt OF principal
only liGe notes which are debt OF
principal and interest, should at once
be cashed and cancelled from abundant
and suptrfiuous coin in hand not now
capable Of being applied to any other
use. This is 80 obvious principle OF
sound finance, such az prudent
citizen would apply 10 his private AZ.
fairs, that any Secretary OF the Treas.
ury would be subject TO just reproach
for departure therefrom by reissues,
were II not that the act OF May 81,
1878, seems to require OF him that
fiscal misstep. And beg leave to sub
NIT to the House this question
whether among many other reasons
for its repeal. the contraction OF the
currency sought 10 be averted by that
act that can now in any other and
better way be prevented than by Its
repeal.
The fact that the $348, t81 018 Of
greenback debt is q greenback GU tren.
cy, in 30 far from being reason
against it's payment and destruction
necessary, not without better cur.
rency taking its place, but such cur
rency is at hand OF course, the green.
back debt SHOULD be paid; but, also, a
construction Of the currency should
be avoided. The substitution OF a
better currency for the greenbacks
runs no hazard OF contraction.
But the consequences of not using
our coin surplus thus are serious. For
In currency OF some sort will the
years taxes be paid, aud the excess Of
receipts over the authorised disburss.
ments OF the Treasury would be- the
measure of the contraction of the cur.
rency. ThiS contraction can be avoid
ed by appropriations for an extraya.
CANT and reckless outpour and ex-
pense like that VI war. 1t can also be
avoided by the payment OF debt. The
first remedy need not be discussed; II
lie, OF course, a remedy the most un.
worthy oil the peoples representatives
The second remedy ia all that remains.
What debt. then, shall we pay2 Be-
yond the three per cents, which are
already provided for and will soon all
be paid, not another dollar OF the prin.
cipal OF our funded debt Ia due for four
years to come, and, except by reduc.
ton OF the interest on the four and a
half per cents and on the Tours, such
as | suggested to the House OF Repre-.
sentatives nearly year ago, In my let
ter OF March 2, 1885, no part OF the
sum can now be cancelled or diminish-
ed by anticipatory purchase without
paying TO the bondholder premium
on pretty much his own terms. The
premium on the four and half per
cents OF 1891 Is nov ii per cent. the
premium on the four per cents of 1907
Is now 28 per cent.
Payment of the funded debt at these
premiums to the bondholder is thrift.
less eHtfavagance. But il is an mex
cusable extravaganza, for the reason
that the operation OF the present sink.
log fund law and the annual appropri.
alton OF l per cent Of the debt to that
fund which 1t requires, and which
gives US no trouble, will cancel every
dollar OF the public iudebt sdness,
greenbacts and all, within one year Of
the day that our last great funded loan
become due and payable in 1907. We
may almost say that our funded debt
will thus pay itself, 30 little excuse
have we for Fastening its payment.
II is therefore necessary now moi
only to reduce tsxstion in order 10
prevent surplus tex collecting from
being currency contracting again and
sgain, but is necessary alec to employ
our present and unavoidable tex sur.
plus in the payment, not Of funded.
but OF the unfunded debt. Great ex.
travsgance OF needless expense, of &C.
rious monetary trouble can both be so
avoided. The surplus coin and bullion
which will remain in the Treasury
after all the bonds subject to call have